Tariffs are imposed by a government on which of the following?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → imports
A tariff is a tax on imports. It makes imported goods dearer for consumers.
Taxes on exports are export duties, taxes on incomes are direct taxes, and taxes on goods and services sold within the country are indirect taxes such as GST.
NCERT (2026-27): Glossary: “Tariff – A tax on imports, which can be levied either on physical units, e.g. per tonne (specific) or on value. Tariffs may be imposed for a variety of reasons including: to raise government revenue, to protect domestic industry from subsidised or low-wage imports, to boost domestic employment, or to ease a deficit on the balance of payments. Apart from the revenue that they raise tariffs achieve little good—they reduce the volume of trade and increase the price of the imported commodity to consumers.” Glossary: “Export Duties – Taxes imposed on goods exported from a country.” |